Pocket Listing: This is a listing of a broker member of the local Multiple Listing Service that is not placed into the Service. Do all listings have to be submitted to Multiple? No. Exceptions are:
- Listings for apartment houses, commercial buildings, etc.
- Listings out of the local area not covered by the Multiple.
- Listings of brokers who are not members of Multiple. FYI, there are about 420,000 licensees in the State and about 160,000 Realtors. And there are some Brokers who are members of Multiple only. Confusing, yes it is.
- A listing by a broker member of the Multiple that has a signed certification from the seller stating that the seller does not authorize the listing to be disseminated by the MLS.
Why might someone sign the statement discussed in #4. A desire for privacy, avoid showing to many prospects, keep sale confidential, safeguard against vandalism or theft, and no need for a quick sale. Why does a broker want this form according to CAR? Both sides of the commission?
CAR’s Q&A on Pocket Listings
CAR published a revised Q&A about Pocket Listings dated Oct. 21, 2016 . It covers all the possible pitfalls of pocket listings for the seller and the agent including less exposure of property, conflict of interest for the agent, possible claim of disparate impact, violation of fiduciary duty, fair housing or anti-trust violation, on and on and on.
The article is there for your reading so I recommend everyone in your office be aware of it, and caveat emptor (buyer beware) and sellers. Brokers, you might consider having your associates read and initial a copy so you can prove that you are supervising. Article at https://www.car.org/en/riskmanagement/qa/mls-folder/PocketListings